United Parks & Resorts(US:PRKS)2025-05-12 14:02Financial Data and Key Metrics Changes - Total revenue for the first quarter was $286.9 million, a decrease of $10.5 million or 3.5% compared to the first quarter of 2024 [18] - Net loss for the first quarter was $16.1 million, compared to a net loss of $11.2 million in the first quarter of 2024 [21] - Adjusted EBITDA was $67.4 million, a decrease of $11.7 million compared to the first quarter of 2024 [21] - Attendance decreased by approximately 59,000 guests or 1.7% compared to the prior year quarter, primarily due to the timing of Easter and spring break [18][19] Business Line Data and Key Metrics Changes - In-park per capita spending increased by 1.1% during the first quarter, marking growth for 19 of the last 20 quarters [6] - Admission per capita decreased by 4.2%, influenced by the admissions product mix and lower realized pricing [19] - Total revenue per capita decreased by 1.8% [19] Market Data and Key Metrics Changes - April 2025 attendance was up 8.1% compared to April 2024, indicating a positive trend moving into the second quarter [7] - Year-to-date attendance through April showed approximately 1.3% growth on a fiscal basis [19] Company Strategy and Development Direction - The company is focused on significant investments in new rides, attractions, and events to enhance guest experience and drive revenue [8][15] - Discussions are ongoing regarding the integration of branded hotels into parks and unlocking the value of owned real estate [12][15] - The company is exploring sponsorship opportunities, expecting to exceed $20 million in high-margin revenue over time [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving new records in revenue and adjusted EBITDA for 2025, with 75% of historical attendance and revenue opportunity still ahead [8][17] - The company is optimistic about the impact of new attractions and events, as well as the potential increase in attendance due to competitive market dynamics [34][65] Other Important Information - The company repurchased 100,000 shares for approximately $4.6 million during the first quarter [16][22] - The balance sheet remains strong, with a net total leverage ratio of 3.1 times and approximately $764 million in total available liquidity [15][22] Q&A Session Summary Question: How does the company plan to bridge the first quarter loss to expected EBITDA records? - Management highlighted strong April performance with attendance up over 8% and ongoing strategies to improve admissions per capita [30][34] Question: What was the impact of Easter on April attendance? - Management noted that April's attendance benefited from the Easter shift, with additional attendance beyond that expected from the holiday [41] Question: How is the company performing in international sales? - International ticket sales are up low single digits, with management indicating that international attendance does not significantly impact overall performance [52] Question: What are the expectations regarding labor costs due to competition from Epic? - Management acknowledged planned labor increases but emphasized effective management of costs to maintain guest experience [81] Question: What is the company's approach to capital allocation and buybacks? - Management stated that they are comfortable with the current leverage ratio and are focused on maximizing returns to shareholders through strategic capital allocation [86]